Teaching Your Teenager To Make Wise Financial Decisions

You have a young teenager that is just old enough to start making decisions on their own, but you are still a little nervous to cut them completely loose to make their own financial decisions.  So what do you do?  Well, you are in luck!  There are easy ways that your credit can can help with to provide your teenager financial freedom to set them on the right path to wise adult financial decisions. 

1.     Prepaid Cards – Prepaid cards function essentially like debit cards except they aren’t tied to a checking or savings account so they cannot be overdrawn.  Your teenager can only spend what’s available on the card to spend.  So you have the peace of mind that your child isn’t overspending and your teenager gets to learn how using a card works!

2.  Debit Card Customization – Think your teenager is ready for a debit card?  While debit cards are tied to a checking account and can be overdrawn, you can set limits to help minimize the odds this happens.  Customizing the options on your teenager’s debit card with features like low daily limits, pin or signature only transactions, and no cash withdrawals can help graduate your teenager to a real functioning debit card without all of the features that could get them financial trouble if they don’t quite know how to manage them. 

3.  Online Banking & Budgeting – There is no better way to grasp the concept of money in-money out than reviewing what you have spent each month.  Have your teenager “balance” their account and look at what they have spent their money on.  The concept of how quickly money can be spent will sink in very quickly when your teenager looks at the big picture using online banking or a budgeting tool, like Honor’s Money Desktop! 

What other ways do you help your teenager learn about responsibly managing their money?  Let us know and don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

Most Common Budgeting Mistakes

It’s no wonder that January is the number one month for people to begin new financial endeavors, and nearly a third of people surveyed by GoBankingRate said their 2016 goals include “saving more and spending less.” At Honor Credit Union, this is music to our ears, as we love helping members save their money! BUT the big question is HOW are these people going to stick to their budget and be financially successful? By having a fail-proof budget in place, and knowing what the most common budgeting mistakes are and how to avoid them!

Here are the top five mistakes (and how to avoid them!):

1.      Failing to set a realistic budget- Many times, people feel overwhelmed by how long it takes to tack expenses and set a budget. Make time to sit down and tackle this project, as it will only help you in the long run.

2.      Using the exact same budget every month- This is a big mistake, as expenses differ each month, depending on holidays, birthdays, vacations, energy costs during warmer or cooler months, or unexpected home or auto repairs. Plan each month one month ahead, so you can make be sure to allot money for these particular expenses that aren’t recurring.

3.      Never allowing for wiggle room-  If your budget is too set, as in every penny is set aside for some specific expense, you won’t have anything left to pay for that unexpected car repair or other surprise expense. Be sure to set aside some money for these extra expenses.

4.      Relying on credit cards- If you’re relying on credit cards to make payments on necessary expenses, but then failing to make payments towards the cards themselves, you’re just digging yourself a huge debt hole that you may not be able to get out of. To avoid this, use cash only for the first few months of your budget so you can see where the money is going.

5.      Quitting your budget too soon- Many times, people will stick to their budget for a couple of months, then quit. Don’t do this! Successful budgeting takes time. You need to mess up a little in order to figure out what you really need each month.

Remember- if you stick to your budget as closely as possible and make budgeting a part of life and a long-term commitment, you’ll ultimately end up financially successful!

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu! 

To hear 97.5 Y-Country's Mark Durocher and Honor's Kaylee Williams talk about New Year's Financial Resolutions, click on the Mason Jar Monday episode below!

 

Money Savvy Tips For Recent Grads

 

If you’re a recent grad, you’re probably basking in the glory of wrapping up your school career, earning your degree, and jumping headfirst into the real world. But with that real world comes the jolt of real financial responsibilities. Here are some tips to help get you through that initial shock of pure adulthood.

1.      Begin paying your student loans!  Most student loan lenders give you six months after your graduation date to begin paying back student loan debt.  If you need this time to get settled and find a job, of course take it.  But if you have a job lined up and find yourself with a little extra cash each month, slap it in your student loan!  You can start getting that principal balance down little by little so that when that six month grace period is up you are in even better shape than you would have been otherwise!

2.      Keep your expenses as low as possible! Just because you graduated and may have a job right away, doesn’t mean you can now go out and purchase that brand new car you’ve been eyeing up. Also, don’t feel like you need to take on big expenses or purchases right away. If you don’t have to move out of your parents’ house yet, don’t! If you can stick it out in your shabby little apartment for the time being to save a couple hundred bucks a month, do it! This is a great time to start socking away some cash to start building on your savings account.

3.      Ask for help! If you’re struggling to make your payments on your loan, car, credit card, etc., or you need help figuring out a game plan for your budget, ask for help. Swing by your local credit union, explain your current financial situation, and we can help you come up with a plan.

The sooner you get your financial situation in check after graduation, the easier the real world will be.

Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

To listen to 97.5 Y-Country’s Wild Bill and Honor’s Scott McFarland talk about getting your budget in check after graduation, listen to the Mason Jar Monday episode below.

Barbecuing On A Budget

It’s finally barbeque season, so get that grill fired up! But, as fun as grilling out with friends and family can be, it can get a little pricey if you are playing host or hostess.  However, there are ways to stick to a budget while still indulging in good eats. Here are three tips to follow so you can have your burger and eat it, too.

1.      Buy discounted meat - According to a recent survey, the ground beef you’ll need for your burgers costs 12% more this year (about $4.61/lb) compared to last year. To avoid breaking the bank, buy your meats when it goes on sale, and freeze it until BBQ day. Or, go on the day of your party and buy the fresh discounted meat then. Meat on sale is still fresh and good to use, but it needs to be used soon.

2.      Make it a potluck - You buy the main dish, everyone else brings the sides and dessert. Seems like a fair trade, right? This way, you’ll get a variety of flavors at your get-together, and nobody spends much. Have Aunt Sally bring her famous chocolate cake, Uncle Joe can bring his corn on the cob, and Bill, your neighbor down the street, can bring the beer.

3.      Use what you’ve got- Don’t blow your cash on paper plates and plastic utensils. Instead, use the dishes in your cabinet, and put your dishwasher to use afterwards. This way you’ll save money and make an eco-friendly decision.

 

So go ahead- have a party! Just make a few budget-conscious decisions when planning and you’ll save money and have fun in the process.

Don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

To listen to 97.5 Y-Country’s Wild Bill and Honor’s Scott McFarland talk about barbecuing on a budget, listen to the Mason Jar Monday episode below.

April Is Youth & Financial Literacy Month!

 

April is a pretty special month for more reasons than starting with showers and ending with May flowers!  April is Youth and Financial Literacy Month!  Teaching our young ones how important saving is can really make a difference in their financial success as they get older!

Here’s why saving at a young age is a good thing:

1.      Just as the saying goes “Old habits die hard” good habits started at a young age will die hard too! All good lessons and habits begin early. Learning to save at an early age is essential to a healthy financial future. It has been found that habits cultivated at an early age stay with people most of their lives. If you help your child begin saving a little, they may have a nice nest egg when they need it most.

2.      Wants Vs. Needs…the younger we start teaching this, the better!  Start giving your child an allowance, even if it’s just $5/week or smaller. When it’s their hard earned money that they’ll be expected to use for items they want or need, they’ll better understand the value of their dollars. Do they really want that candy bar? When it’s their money that they are spending, the thought process of what they really want to spend it on will make more sense.

3.      Interest! Now this may be a concept your kids may not quite understand if they are younger, but that’s ok because one day they will appreciate this.  Once you open your child a Youth account at Honor, their money will begin earning interest! Then, as they add to it, that initial $15 they put in could turn into a whole lot more. Then, when the day comes that they really need it, they’ll have the money for items, experiences, and their future.

Every day is a good day to save money, no matter how young you are. But now, there’s never been a better time to save at Honor Credit Union! To celebrate Youth & Financial Literacy Month anyone who opens a youth account with a $5 deposit during the month of April (that’s basically anyone age 0-22), Honor Credit Union will put $10 extra into the account!  Swing by a branch or give us a call at 800.442.2800 to learn more!

And of course, don’t forget to follow Honor on Twitter @honorcu!  Tweet us and let us know what you want to hear us talk about on Mason Jar Monday next week using #askhonorcu!

To listen to 97.5 Y-Country’s Wild Bill and Honor’s CEO Scott McFarland talk about Youth Literacy Month, listen to the Mason Jar Monday episode below.

Ways To Impress Your Valentine On A Budget

Did you know that Valentine’s Day is the most commercialized “holiday” in the entire world, and it’s not even a federally recognized holiday!  Whether your Valentine’s day will be spent with your significant other or a family affair, there are ways that you can make this coming weekend special without breaking the bank!

• Don’t buy a card, MAKE one!  More than 1 billion cards are sent each Valentine’s Day, just in the United States, estimates the U.S. Greeting Card Association!  Save the generic sayings and pictures and send (or even better – hand deliver) a card that means more.  Whether you are crafty and artsy or not, it truly will be the thought that counts.  Include an inside joke or saying that means something special to your unique relationship.
• Cook dinner at home, together!  We’ve talked before about the intense mark up on both food and beverages at restaurants.  Of course, there is always that factor of not having to prepare or clean up after the meal, but sometimes both of those things can be more fun when done together in the comfort of your own home!  Decide what fancy feast to cook together as a couple or a family and do it together!  You may be surprised at not only how much money you will save by staying home, but also how many laughs you can have together cooking a meal together from scratch! Rent both of your favorite movies to top the night off from the front row seat of your own couch. 
• DIY a thoughtful gift!  If you really want to do something a little above and beyond the traditional chocolate or flowers, find a gift that means more and you can make yourself!  If just the thought of trying to find a gift to hand-make leaves you dumb founded, get on Pinterest or a DIY craft site for ideas that are affordable AND come with step by step instructions!  Maybe you still go the route of flowers, but you give them in a vase that is customized by you!  

Don’t forget to follow us on twitter @honorcu and let us know what you want to hear about next week using #askhonorcu!  

Just Like Mars and Venus, Men and Women View Debt VERY Differently!

Any of our married couples can attest that their view and their spouse’s view on money and debt is probably a little bit (or a lot of bit) different.  Sometimes you probably just agree to disagree.  Every couple is different, but did you know that part of it may be the different ways that men and women view money and debt?  Here are a few of the differences noted on an Experian* analysis from 2013:

• On average, men carry 4.3 percent MORE debt than women.  Regarding pr-approved loan amounts, men’s mortgages were 4.9 percent higher than home loans taken out by women!  Men also use more of their available credit, while women keep lower balances.

• If the time comes to ask for help, women are more likely to recognize this first and seek financial help than men.   Men and women alike should both remember to use their local credit union, like Honor CU, as a valuable resource if they ever do find themselves in a situation.  We can suggest solutions to help consolidate or manage debt (or savings!) more effectively!

• When dealing with budget woes, women will approach a difference in income vs. expenses by eliminating things on the household budget while men will approach by focusing on increasing income and keeping the budget the same.

Do any of these ring a bell in your household?  As with any topic of discussion, it is important to recognize the differences and talk about them to keep the overall peace and approach things like the household income and budget with a unified front.

What other differences do you think exist in how men and women view money?  Let us know on twitter @honorcu using #askhonorcu! 

Listen to the full Mason Jar Monday episode as Scott and Wild Bill talk about the differences in how men and women view money and debt! 

*Source: http://www.bankrate.com/finance/debt/men-women-and-debt-does-gender-matter.aspx

Financial "Faux-Pas" To Avoid In Your Twenties

Whether you are graduating from college, moving out on our own for the first time, starting your first real job, or making your first big purchase, your twenties are an exciting time often full of life milestones.  With those life milestones, comes the increased responsibility of managing your own money.  As exciting and fun as this time of your life can be, here are three financial “faux-pas” that you should avoid to set up your thirties and beyond to be a success. 

• Not setting financial goals: setting a savings goal is crucial regardless of your age.  As you approach the stage of looking at your first job, your first car, or even your first home, you will thank yourself for setting a savings goal and sticking to it when it comes to making a life purchase.

• Buying more than you can afford: on the flip side of savings, is spending.  We’ve all be tempted once we start to receive those first paychecks to go out and splurge.  Splurging a little is just human nature and is ok, but within reason.  Don’t spend more than you can afford (especially at the expense of your credit card!) just because you now have an income or are trying to keep up with your friends who are all buying brand new cars.  Set your limits, make a plan, and stick to it.  Your older self will thank you, later!

• Not starting a retirement fund: You’re probably thinking that you just started working, why in the world should you think about retiring?! It’s never too early and you will REALLY thank yourself when you are in your thirties and already have a head start on reaching your retirement goal.  Even if it is the bare minimum each paycheck, setting aside something towards retirement will literally pay off as the years go by. 

The full Mason Jar Money conversation between Honor’s CEO Scott McFarland and 97.5Y-Country’s Wild Bill on Financial “Faux-Pas” To Avoid In Your Twenties is below.  We just listed a few, but what are some other financial tips that you would give to someone in their twenties just starting out on their own?


Comment on this post, or follow us on twitter @honorcu and use #askhonorcu to get involved! You can also comment with the topic you want to see discussed next week! It's your money, and we want to talk about things you care about!